The public budget has posted a 220 million-euro surplus (0.19% of the GDP) nine months into the year, according to data published yesterday by the Ministry of Economy and Finance. Total revenues rose 20% in the first nine months of the year (in RON), to nearly 28 billion euros, while total expenses rose 29% (in RON), to 27.7 billion euros.

The Government still has surplus money nine months into the year, and will spend additional capital in the last quarter in order to meet the budget deficit target. For the whole year, the general consolidated budget has scheduled a budget deficit of 2.7% of the GDP (i.e. nearly 3.2 billion euros). This means that the Government will have to spend an additional sum of almost 3.5 billion euros in the last quarter of the year, above the level of revenues, in order to meet this target.

Data on the budget in the first nine months of the year, and on its trend compared with the same time in 2006, provide a base to assess the sustainability of budget plans for 2008.

For example, the 2008 draft budget allows a 21% revenue increase, as sums collected for the budget went up 21% in the first nine months of this year. The only revenue categories where the Government expects higher increases next year are social security contributions, which are forecast to go down 6% during the year, and for which the basis of assessment will go up, as well as VAT contributions. All other types of revenues are expected to see slower increases next year, against the first nine months of this year.

In terms of spending in the electoral 2008, the strongest rise is expected for social security and protection spending (31%) compared, 19% in the first 9 months of this year. Interest rate spending will also register a faster increase next year, while other spending is expected to register a slower increase.

The public budget has posted a